Bedwick’s Hedge Fund the Latest Victim of Global Economic Turmoil

Bedwick's Hedge Fund the Latest Victim of Global Economic Turmoil

The Hong Kong-based Sequence Asset Management is returning capital to the investors and will shut by the end of this month. This $120 million global macro hedge fund is run by the former head of global macro trading at Lehman Brothers. According to the documents obtained by Reuters, the hedge fund has been struggling to boost the assets since its inception in October 2009.

The worsening Euro zone debt crisis and slowing growth in Asian countries have driven investors to well-established and safe funds. Macro hedge funds follow the market trends and invest money anywhere they anticipate to create value including derivatives, currencies, stocks, bonds, etc.

Michael Mauboussin’s 10 Attributes of Great Investors [Pt.1]

michael mauboussin, Credit Suisse, valuation and portfolio positioning, capital markets theory, competitive strategy analysis, decision making, skill versus luck, value investing, Legg Mason, The Success Equation, Think Twice: Harnessing the Power of Counterintuition, analysts, behavioral finance, More Than You Know: Finding Financial Wisdom in Unconventional Places, academics , valuewalkIn 2016, Michael J. Mauboussin completed his 30th year on Wall Street. The analyst, who was working at Credit Suisse at the time, decided to celebrate by reflecting on the ten attributes of great investors he had observed over the previous three decades. He published his ideas in a report in August 2016. I've summarised Read More

In first quarter of 2012, Bedwick’s fund gained only 0.1% against the 1.9% growth in the Eurekahedge Global Macro Hedge Fund Index. In the same period last year, the fund had recorded a 3.1% growth, outperforming the 1.2% fall in the index.

Allan Bedwick originally established the OGI Global Macro Fund in Japan in October 2009. But he moved last year to Hong Kong and changed the name of the fund to Sequence Asset Management after Japan was hit by a major earthquake and tsunami.

However, Sequence Asset Management is not the only fund to have drowned into the economic crisis. The industry tracker Eurekahedge estimates that over 140 Asia-based hedge funds have been closed since December 2007. Of them 38 were closed in 2012 alone .

Some of the major closures of 2012 include Novatera Capital (with $90 million in hedge fund), Orvent Asset ($130 million event-driven hedge fund), TIG Advisors ($210 million in global emerging market hedge funds). Other closures include Doric Capital, Thaddeus Capital Management, RSR Capital, Komodo Capital and Britain-based Wessex.